China's Zoomlion Heavy flags third-quarter upturn

SINGAPORE Oct 13 Chinese heavy equipment
manufacturer Zoomlion has begun a gradual
recovery from a punishing downturn, it said on Thursday, even as
it announced widening net loss for the first nine months of the
year.

China's massive construction boom initiated by a $644
billion government stimulus package announced in 2008 had
spurred heavy equipment makers to produce more equipment, but
slowing economic growth has resulted in a glut of unsold
machinery.

Zoomlion Heavy Industry Science and Technology Co said its
net loss for the first nine months of the year is expected to
widen to between 787 million yuan ($118 million) and 812 million
yuan, from 518 million yuan a year earlier.

However, the last three months of that period are likely to
show a net profit of between 25 million yuan and 50 million
yuan, against a loss of 208.4 million yuan in the same quarter
last year.

The results for the nine months to end-September were
negative largely because of decreasing revenue from the
construction machinery sector and foreign exchange fluctuations,
it said in a filing on the Hong Kong stock exchange.
($1 = 6.6685 Chinese yuan renminbi)

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